Supreme Court Issues Notice to AP Government Over Shrimp Market Fee Hike
The Supreme Court has issued notices to the Andhra Pradesh government over the increase in market fees on shrimp from 0.25% to 1%. The development follows a petition filed by 15 shrimp exporters' associations challenging the state government's decision to raise the levy.
The associations have questioned the legality of the revised fee, arguing that it goes against the provisions of the Andhra Pradesh Agricultural Market Act, 1966. The case brings renewed attention to the financial and regulatory issues affecting shrimp exporters in the state.
Exporters Challenge the 2022 Government Order
The dispute concerns a government order issued by the Andhra Pradesh Agriculture Department on April 22, 2022. Through this order, the market fee applicable to shrimp was increased from 0.25% to 1%.
Fifteen shrimp exporters' associations challenged the order, arguing that the increased levy was not consistent with the provisions of the Andhra Pradesh Agricultural Market Act, 1966. They approached the courts seeking to have the government order set aside.
The exporters' side contended that market fees should be collected only in accordance with the activities and transactions covered by the relevant market regulations.
Supreme Court Declines to Stay Recovery of Pending Dues
The case has also raised the question of recovering market fee arrears from exporters.
The Andhra Pradesh High Court had passed an order allowing the recovery of pending dues. The exporters subsequently approached the Supreme Court, seeking relief against the High Court's decision.
However, the Supreme Court declined to stay the High Court's order while issuing notices to the state government on the broader challenge to the increased market fee.
This means the legal challenge is still under consideration, and the Supreme Court has not yet delivered a final ruling on the validity of the revised fee.
Legal Questions Over Applicability of Market Fee
During the proceedings, the exporters' counsel, Dama Seshadri Naidu, presented arguments concerning the applicability of market fees under the 1966 Act.
The arguments focused on whether the fee could be collected from exporters in cases where the relevant transactions did not take place within the notified market area.
The exporters maintained that the levy should not automatically apply to purchases made directly from farmers and subsequent exports, where the transactions fall outside the scope of the notified market's operations.
The matter therefore involves not only the increase in the fee but also the circumstances under which shrimp transactions can be brought under the market fee system.
What the Case Means for Andhra Pradesh's Shrimp Industry
Andhra Pradesh is a major centre for shrimp farming and exports in India. Changes in market-related charges can influence the operating costs of exporters and the wider supply chain connecting farmers, traders and processing companies.
For exporters, the difference between a 0.25% and 1% fee represents a fourfold increase in the applicable rate. The final outcome of the case could therefore have implications for how market fees are applied to shrimp transactions in the state.
With notices issued to the Andhra Pradesh government, the matter now awaits further proceedings. The Supreme Court's final decision will clarify the legal position on the revised fee and the exporters' challenge to its applicability.
